The Omani Government is to sell a 19% stake in Omantel, according to media reports.

The government, which currently holds 70% of Omantel will reduce its holding to 51%, through a two phase deal. In the first phase, the company will sell only to selected local investors, while the second phase will be open to all Omanis.

Saud bin Nasser al Shukaily, Secretary-General for Taxation at the Ministry of Finance, was quoted by Oman media as saying a first phase of the sale would consist of a private placement for investors buying more than 2 million rials ($5.2 million) worth of shares.

This will be open to major local individual investors and to institutional investors, and is expected to be completed in March, Shukaily said. A book-building process will determine the price.

The sell off will comprise 142.5 million Omantel shares in total; although the amount of shares reserved for each phase was not disclosed.

The sale is being made a part of plans to privatise Omantel, increase the shareholder base and encourage market trading.